Fran Dattalo, chief executive officer of Union Savings Bank in Danbury, Conn., will continue in that role until his retirement at the end of the year. He meets with The News-Times Tuesday, April 22, 2014.
Photo: Carol Kaliff

Cynthia C. Merkle, center, has been elected president of Union Savings Bank in danbury, Conn.
Left is Jack Tyransky, chairman of the board and right is Fran Dattalo, chief executive officer, will be retiring at the end of the year. They are photographed at the bank on North Street in Danbury, Conn., Tuesday, April 22, 2014.
Photo: Carol Kaliff

Cynthia C. Merkle, left, has been elected president of Union Savings Bank in danbury, Conn.
Jack Tyransky, chairman of the board is center and Fran Dattalo, chief executive officer is right. They are photographed at the bank on North Street in Danbury, Conn., Tuesday, April 22, 2014.
Photo: Carol Kaliff

DANBURY -- Union Savings Bank officials have announced that longtime banker Cynthia C. Merkle will take the reins of the organization later this year as part of a structured transition.

Merkle was recently named the bank's president by the board of directors and will take over Dec. 31 for outgoing CEO Fran Dattalo, who announced his retirement this month.

The change will mark the institution's third CEO in the past three years and comes at a time when the bank, the fourth largest in Connecticut, has been reducing debt and closing branches.

Dattalo was named CEO in March 2012 after the resignation of his predecessor, Jay Lent. Dattalo said this week the transition is part of a management plan that was established when he was named to the position.

"It was the board's desire to have a structured transition, and it fit with my plans to retire and spend more time with my family," he said.

Merkle joined the bank in May as executive vice president and chief operating officer. She previously served as executive vice president at Eastern Bank in Boston, one of the largest mutual banks in New England, where she worked for more than two decades.

"Over the past year, Cindy has made a significant impact with the wealth of experience and leadership she brings to Union Savings Bank," Dattalo said. "I am very pleased and know I am leaving the bank in good hands."

"Merkle comes to us with more than two decades of experience at a bank that has a similar roots as Union Savings," he said. "As a mutual bank, our philosophy is dedication to the community and customers."

During the past few years Union Savings has seen a near 8 percent reduction in its total assets, to about $2.3 billion, and has closed several area branches.

Dattalo said the bank took an in-depth look at the profitability of its branches in 2012 and decided to close underperforming properties that had less than $10 million in transactions, including Bridgewater and southern Newtown.

"These days a branch really needs $40 million to $60 million in transactions to be successful," he said.

The bank is also selling its branch in Sharon to Salisbury Bank, which Dattalo said has a stronger presence in that region.

"The Sharon branch was about 17 miles away from any of our other branches," Dattalo said. "It was something of an island."

He added that the bank also deleveraged more than $180 million in debt in the past two years, due to borrowing costs associated with the money.

"We've been building our deposits and had more cash on hand, so it made sense," Dattalo said.

Public deposits at the institution have grown in the past two years from $86 million reported at the end of 2011 to $110 million as of Dec. 31, according to the state Department of Banking.

Good transition

Danbury Chamber of Commerce President Steven Bull said Merkle's extensive experience with mutual banks makes her the right person at the right time to lead Union Savings as it continues to grow and expand.

"Banks that embrace technology, while at the same time provide stellar customer service, will separate themselves from the others," he said. "Union Savings is positioning itself for that kind of transition."

Merkle, who had overseen the customer service division in her previous position, said she's already involved in creating a "solutions team" approach to how the bank services its clients. Teams of experts, from wealth management to mortgages, can meet with clients at their location, whether their home or business.

Merkle said she's also incorporating iChat, a system that allows customers to speak directly with customer service representatives, as well as teams of experts within the organization's call center, so that questions can be answered directly by someone with in-depth knowledge of that area.

In the long term, Merkle said she sees growth in small business services and commercial lending.

"We believe there will be an increased demand for services from small businesses," she said. "That will be an area of focus for us in the next couple of years. We are also seeing a lot of momentum in our commercial lending division."